scholarly journals Taxes, R&D Expenditures, and Open Innovation: Analyzing OECD Countries

2021 ◽  
Vol 7 (1) ◽  
pp. 36
Author(s):  
Daniel Balsalobre-Lorente ◽  
Ayoub Zeraibi ◽  
Khurram Shehzad ◽  
José María Cantos-Cantos
Keyword(s):  
Method Of Moments ◽  
Open Innovation ◽  
Good Governance ◽  
Generalized Method Of Moments ◽  
Positive Association ◽  
Tax Incentives ◽  
Corporate Taxes ◽  
Business Sector ◽  
Governance Quality

This paper aims to measure the effect of tax contributions in promoting innovation while highlighting the role of corporate taxes in governance quality in nations within and outside the Organization for Economic Co-operation and Development (OECD). The study applied the generalized method of moments (GMM) framework and found that good governance invariably increases the Innovation Index. Moreover, research and development expenditures revealed a positive association with the Innovation Index. However, corporate taxes and taxes paid by the business sector harm the Innovation Index. Following the investigation, we recommended that policymakers should plan well to balance the costs of innovation and tax incentives, to avoid stimulating unproductive innovations or affecting operating budgets.

scholarly journals THE ROLE OF INTEGRATED ISLAMIC COMMERCIAL AND SOCIAL FINANCE IN REDUCING INCOME INEQUALITY IN INDONESIA

2019 ◽  
Vol 5 (2) ◽  
Author(s):  
Arif Widodo
Keyword(s):  
Income Inequality ◽  
Method Of Moments ◽  
Wealth Distribution ◽  
Generalized Method Of Moments ◽  
Advanced Economies ◽  
The Social ◽  
Microfinance Institution ◽  
Islamic Microfinance ◽  
Commercial Finance

Recent years saw the heated debates among prominent economists on the growinginequality in advanced economies, and accordingly, many solutions to this seriousproblem have been put forward. Among the practical-cum-workable solution isprogressive taxation for wealth and income, especially the top one percent. Such asolution, however, has been implemented in Islamic perspective what so-called, zakahwhich is now referred to as social finance. In this paper, using the Gini coefficient datacovering 34 provinces in Indonesia over a decade, we examine whether the role ofsocial finance in tandem with commercial finance can adequately solve the problemof wealth distribution in Indonesia, one of the largest Democratic-Muslim countriesin the world. Using the Generalized Method of Moments (GMM) model, the resultsdemonstrated that Islamic commercial finance solely is proven statistically incapable oftackling inequality while the social finance (zakah) is performing very well in this matterover all specifications. Most importantly, when both are incorporated in a model, theresult showed a significant reduction in income inequality implying that the integratedIslamic finance which can be implemented in both Islamic microfinance institution andIslamic banking is more capable, as opposed to when both are separated, of helpingaddress the income inequality problem in Indonesia.

scholarly journals The value of political independent supervisory boards: Evidence from Indonesian dual board setting

2021 ◽  
Vol 10 (1) ◽  
pp. 128-138
Author(s):  
Joni Joni ◽  
Jahja Hamdani Widjaja ◽  
Maria Natalia ◽  
Ivan Junius Salim
Keyword(s):  
Risk Analysis ◽  
Method Of Moments ◽  
Generalized Method Of Moments ◽  
Market Risks ◽  
Moments Method ◽  
Strategic Role ◽  
Supervisory Boards ◽  
Two Measures ◽  
Board System

We investigate whether political independent supervisory boards (political I-SBs) help companies to reduce their corporate risks in the setting of Indonesian two-tier board system. This study is different from other studies in several ways. First, while most prior studies examine the effectiveness of independent boards in one-tier board setting, we use dual board system. This system promotes the strategic role of political I-SBs. Second, we use two measures of corporate risks: operating and market risks. Based on 1,176 firm-year observations for operating risk analysis and 1,254 firm-year observations for market risk analysis, we find that firms with political I-SBs have lower operating and market risks than firms with non- politically connected independent SBs. We also control for endogeneity problem using GMM (Generalized Method of Moments) method, and the results are still consistent.

FINANCIAL INCLUSION, INSTITUTIONAL QUALITY AND FINANCIAL DEVELOPMENT: EMPIRICAL EVIDENCE FROM OIC COUNTRIES

2021 ◽  
pp. 1-28
Author(s):  
MINHAJ ALI ◽  
MUHAMMAD IMRAN NAZIR ◽  
SHUJAHAT HAIDER HASHMI ◽  
WAJEEH ULLAH
Keyword(s):  
Financial Development ◽  
Method Of Moments ◽  
Positive Impact ◽  
Generalized Method Of Moments ◽  
Institutional Quality ◽  
Financial Inclusion ◽  
Moderation Effect ◽  
The Relationship ◽  
Unique Study

This unique study examines the moderation effect of institutional quality (IQ) on the relationship between financial inclusion (FI) and financial development (FD) of 45 Organization of Islamic Cooperation (OIC) countries. For empirical analysis, panel data are used for the period 2000–2016. We use the Arellano–Bond generalized method of moments (GMM) and two-stage least-squares (2SLS) method in our estimations to draw multidimensional results. The empirical results confirm the significant positive relationship between FI, IQ and FD. Interestingly, we find that IQ moderates FI and has a significant positive impact on FD. Our findings are robust to alternative econometric specifications of FI, IQ and FD. Therefore, policymakers must sensibly understand the pivotal role of FI and IQ in establishing sustainable future development of OIC countries.

scholarly journals Innovation, Productivity and Environmental Performance of Technology Spillovers Effects: Evidence from European Patents within the Triad

2017 ◽  
Vol 10 (5) ◽  
pp. 123 ◽  
Author(s):  
Luigi Aldieri ◽  
Concetto Paolo Vinci
Keyword(s):  
Method Of Moments ◽  
Environmental Performance ◽  
Unobserved Heterogeneity ◽  
Generalized Method Of Moments ◽  
The United States ◽  
Policy Implications ◽  
International Firms ◽  
Weak Exogeneity ◽  
Environmental Activities

The aim of this paper is that of investigating whether the integration process between environmental activities is important in the Spillovers flows analysis. For this reason, we explore the role of knowledge externalities for large international firms engaged both in environmental and in non-environmental activities. In particular, we develop a theoretical framework and an empirical analysis of the United States, Japan and Europe based upon a dataset composed of worldwide R&D-intensive firms. In order to deal with the firms’ unobserved heterogeneity and the weak exogeneity of the regressors, we implement the Generalized Method of Moments (GMM) method. The results show a differentiated impact of environmental spillovers on firms’ productivity and green performance, by suggesting some interesting policy implications in terms of actions to favor full sustainability of firms’ production.

scholarly journals The Role of Public Governance Practices for Business R&D Activity in the EU

2020 ◽  
Vol 18 (1) ◽  
pp. 125-141 ◽  
Author(s):  
Dejan Ravšelj ◽  
Sabina Hodžić
Keyword(s):  
Economic Performance ◽  
New Public Management ◽  
Good Governance ◽  
Well Being ◽  
Business Sector ◽  
Public Governance ◽  
The Public ◽  
Governance Practices ◽  
The Eu

The public sector and public governance play a crucial role in the contemporary society which takes care of social needs. Therefore, it is not surprising that good governance has often been used to explain good economic performance as well as the well-being of a society over the last decade. However, the business sector often represents a channel through which public governance affects economic performance, which has largely been neglected in the existing literature. In this context, not much is known about the role of public governance in promoting research and development (R&D) in the business sector in the EU. Therefore, this article aims to explain the interaction between the public and business sectors in a cross-national setting by investigating the relationship between different public governance practices and business R&D activity. The aim is to be achieved by applying a multiple regression analysis on a cross-sectional dataset of EU member countries. The empirical results show the following. First, they reveal that, in general, public administration in the EU is predominantly based on neo-Weberian state rather than New Public Management governance practices. Second, they reveal that public governance practices have important implications for business R&D activity. They show that impartiality, accountability and efficiency enhance business R&D activity in the EU, while closeness deteriorates it. The findings of the article are especially beneficial for contemporary governments and policymakers to establish appropriate public governance and policy practices in the future.

scholarly journals THE ROLE OF INTEREST RATES AND PROVINCIAL MONETARY AGGREGATE IN MAINTAINING INFLATION IN INDONESIA

2017 ◽  
Vol 19 (3) ◽  
pp. 267-286
Author(s):  
Chandra Utama ◽  
Miryam B.L. Wijaya ◽  
Charvin Lim
Keyword(s):  
Interest Rates ◽  
Money Supply ◽  
Method Of Moments ◽  
Phillips Curve ◽  
Generalized Method Of Moments ◽  
New Keynesian ◽  
Monetary Aggregate ◽  
The Impact ◽  
The Relationship

Inflation is a regional phenomenon hence the use of provincial data might be more appropriateon explaining the relationship between monetary policy and inflation. This paper analyzes the impact of changes in provincial money supply, the policy rate, and the interbank rate on regional inflation, within the framework of Hybrid New Keynesian Phillips Curve (HNKPC). This paper employs Generalized Method of Moments (GMM) on panel data of 32 provinces from 2005-III to 2014-IV. The estimation result shows that provincial monetary aggregate influence inflation significantly only in Sumatera. Furthermore, the policy fate affects the inflation in Sumatera and Kalimantan-Sulawesi. Using the interbank money rate, the result shows this rate also affect the inflation in most of the region except Kalimantan-Sulawesi. These findings show the price-based policy is more significant on affecting the provincial inflation compared to the provincial money supply.

scholarly journals CONVERGENCE OF HUMAN DEVELOPMENT INDEX: CASE STUDY OF FOREIGN DIRECT INVESTMENT IN ASEAN

2021 ◽  
Vol 22 (1) ◽  
pp. 12-17
Author(s):  
M. Elfan Kaukab ◽  
Surwandono Surwandon
Keyword(s):  
Method Of Moments ◽  
Home Country ◽  
Index Case ◽  
Generalized Method Of Moments ◽  
Source Country ◽  
Income Convergence ◽  
Economic Community ◽  
Asean Economic Community

This article examines the role of bilateral FDI and income convergence in affecting HDI increase in countries with middle HDI in ASEAN. The ASEAN Economic Community has been developing and it is expected that the gaps between nations can be covered. This article explores how economic intervention through HDI and income convergence can boost HDI improvement. The writers examine the presence of a statistically significant causal relationship between source country’s GDP, home country’s GDP, source country’s FDI towards the home country, source country total FDI, home country total FDI, and the percentage of source country FDI towards source country total FDI with both countries HDI convergence. Measurement is carried out using the generalized method of moments. Based on yearly samples of high HDI countries (Malaysia, Thailand, Singapore) couple with medium HDI countries (Laos, Vietnam, Cambodia, Myanmar, Indonesia, and Philippine) during 2013–2017 period, the writers find statistically significant impact of home country GDP, source country FDI towards all countries, and FDI percentage of the home country compared to all countries.

scholarly journals Governance quality impact on health economics in selected countries: The panel data approach

2015 ◽  
Vol 4 (2) ◽  
pp. 148-154
Author(s):  
Parvaneh Salatin ◽  
Naahid Noorpoor
Keyword(s):  
Panel Data ◽  
Health Economics ◽  
Life Expectancy ◽  
Least Squares ◽  
Method Of Moments ◽  
Generalized Method Of Moments ◽  
Generalized Least Squares ◽  
Middle Income ◽  
Middle Income Countries ◽  
Governance Quality

The purpose of this paper is investigating the theoretical relationship between the effectiveness of governance quality on health economics in selected middle-income countries, using panel data. The Results of the estimation by using the Method of Generalized Least Squares (GLS) & Generalized Method of Moments (GMM) in selected countries for the period 2002-2011 show that governance quality has positive & significant effect on the life expectancy as an index showing the health economics in the group of the selected countries.

scholarly journals China's Infrastructure Financing and the Role of Infrastructure in Awakening African Economies

2021 ◽  
Vol 18 (2) ◽  
pp. 1-25
Author(s):  
Michael Mitchell Omoruyi Ehizuelen
Keyword(s):  
Panel Data ◽  
Method Of Moments ◽  
Dynamic Models ◽  
Generalized Method Of Moments ◽  
Empirical Evaluation ◽  
Distinctive Character ◽  
Gmm Estimator ◽  
Insight Into ◽  
Agenda 2063

African economies, through Agenda 2063, recognize that developing infrastructure – transport, electricity, energy, water, and e-connectivity – will be critical for the region to assume a lasting place in the global economic system. As a result, this paper addresses the continent’s infrastructure gap and provides an important insight into the rapidly growing presence of China’s official infrastructure financing in Africa as well as the distinctive character of its involvement. In addition, the paper provides an empirical evaluation of the role of infrastructure in awakening African economies. The generalized-method-of-moments (GMM) estimator for dynamic models of panel data developed by Arellano and Bond (1991), and Arellano and Bover (1995) was employed to estimate an infrastructure-increased growth model.

scholarly journals China’s Infrastructure Financing and the Role of Infrastructure in Awakening African Economies

2021 ◽  
Vol 18 (2) ◽  
pp. 0-0
Keyword(s):  
Panel Data ◽  
Method Of Moments ◽  
Dynamic Models ◽  
Generalized Method Of Moments ◽  
Empirical Evaluation ◽  
Distinctive Character ◽  
Gmm Estimator ◽  
Insight Into ◽  
Agenda 2063

African economies, through Agenda 2063, recognize that developing infrastructure – transport, electricity, energy, water, and e-connectivity – will be critical for the region to assume a lasting place in the global economic system. As a result, this paper addresses the continent’s infrastructure gap and provides an important insight into the rapidly growing presence of China’s official infrastructure financing in Africa as well as the distinctive character of its involvement. In addition, the paper provides an empirical evaluation of the role of infrastructure in awakening African economies. The generalized-method-of-moments (GMM) estimator for dynamic models of panel data developed by Arellano and Bond (1991), and Arellano and Bover (1995) was employed to estimate an infrastructure-increased growth model.

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